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Options allow traders to profit with basic or advanced strategies, based on calls and puts, but are not risk-free, exposing granular risks. Top multi-leg options strategies for advanced traders ...
Options give you the ability to overlay a short-term investing strategy on top of a stock. If the stock does what you expect it to do, you could turbocharge your gains or even generate what feels ...
Generating income from options strategies is a generally lower-risk strategy than trying to multiply your money through buying naked calls and puts. That certainly doesn’t mean it’s low risk ...
A typical option strategy involves the purchase / selling of at least 2-3 different options (with different strikes and / or time to expiry), and the value of such portfolio may change in a very complex way. One very useful way to analyze and understand the behavior of a certain option strategy is by drawing its Profit graph.
The iron condor is an options trading strategy utilizing two vertical spreads – a put spread and a call spread with the same expiration and four different strikes. A long iron condor is essentially selling both sides of the underlying instrument by simultaneously shorting the same number of calls and puts, then covering each position with the purchase of further out of the money call(s) and ...
The "straight" ratio-spread describes this strategy if the trader buys and writes (sells) options having the same expiration. If, instead, the trader executes this strategy by buying options having expiration in one month but writing (selling) options having expiration in a different month, this is known as a ratio-diagonal trade.
In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration.
Name. Purpose. How it Works. Benefits. Risks. Covered Calls. Income. Investor owns underlying stocks and sells call options allowing buyer to purchase the shares at set strike price by expiration ...